The best umbrella insurance companies are Allstate, Liberty Mutual and USAA, since they provide consumers with broad coverage at a reasonable price. Additionally, Travelers provides the best umbrella coverage for business owners, while Chubb is best for customers who need particularly high liability limits.
2021’s Best Umbrella Insurance Companies
- Best for Low Premiums: Allstate
- Best for Competitive Pricing: Liberty Mutual
- Best for Military Community: USAA
- Best for High Liability Limits: Chubb
- Best for Business Owners: Travelers
Umbrella insurance is a secondary form of liability coverage, meaning that it applies when the liability limits on another insurance policy have been exhausted. For instance, umbrella insurance often supplements homeowners and car insurance policies. Umbrella policies typically cost $150-$300 annually for $1 million in coverage, though rates may vary based on each customer’s risk factors.
Best Umbrella Insurance Companies
Allstate - Best Umbrella Insurance for Low Premiums
Allstate has the best umbrella insurance for low premiums, since it offers rates as low as $60 - $120 per year for $1 million in coverage. Each customer’s rate will be different due to their individual risk factors, but Allstate’s customer service representatives advertise prices that are cheaper than competitors’.
Umbrella insurance from Allstate covers bodily injury, personal injury, property damage, and landlord liability claims. For example, an Allstate umbrella policy can pay for legal costs resulting from lawsuits, lost wages due to a court appearance, and incidents that happen overseas.
Learn more about Allstate umbrella insurance.
Liberty Mutual - Best Umbrella Insurance for Competitive Pricing
Liberty Mutual has the best umbrella insurance for competitive pricing, since customer service representatives say that they will try to match another company’s quote. Umbrella policies from Liberty Mutual start at $1 million in excess liability coverage, with higher limits available.
Liberty Mutual umbrella insurance provides additional liability coverage beyond the limits of existing policies, including auto, watercraft, and homeowners insurance. It also covers liability claims for niche situations like malicious prosecution, libel, false arrest, wrongful eviction, and violation of privacy, among other things. Policyholders and their household members are covered no matter where they are in the world.
Learn more about Liberty Mutual umbrella insurance.
USAA - Best Umbrella Insurance for the Military Community
USAA has the best umbrella insurance for qualifying customers, including servicemembers, veterans, and their families. USAA umbrella insurance covers the policyholder, their spouse, and any other relatives in the same household. Besides protecting against claims like libel, slander, and invasion of privacy, USAA umbrella policies can also cover car accidents as well as accidents at the policyholder’s home or rental property.
USAA usually writes umbrella policies with limits of $1 million to $5 million, but higher limits may be available. Policyholders must have a USAA car insurance policy to qualify for the company’s umbrella insurance.
Learn more about USAA umbrella insurance.
Chubb - Best Umbrella Insurance for High Liability Limits
Chubb is the best umbrella insurance company for high liability limits because it offers coverage ranging from $1 million to $100 million. Chubb umbrella insurance covers liability after a car accident and liability claims for incidents that occur on the policyholder’s property. Additionally, it pays for defense costs for most lawsuits, and the coverage extends worldwide.
In general, Chubb caters to wealthier customers, and its premiums can sometimes reflect that. It’s also worth noting that Chubb has received high ratings in terms of its financial stability, including a grade of AA from Standard & Poor and A++ from A.M. Best. As a result, Chubb customers can rest assured that the company is financially sound.
Learn more about Chubb umbrella insurance.
Travelers - Best Umbrella Insurance for Business Owners
Travelers has the best umbrella insurance for business owners, since the company advertises a large variety of commercial umbrella coverage options. Travelers recommends its umbrella policies for businesses whose employees drive while on the clock and/or frequently interact with vendors or customers.
Another important benefit is that Travelers has umbrella insurance options for businesses that might otherwise struggle to find coverage. This includes companies with “hard-to-place risks.” Just note that businesses usually need to have their general liability insurance with Travelers to qualify for the company’s umbrella coverage.
Non-business owners can purchase a personal umbrella policy from Travelers, as well, though they will need to have a personal auto policy with the company to qualify.
Learn more about Travelers umbrella insurance.
Tips for Buying the Best Umbrella Insurance
Get an umbrella quote from your auto or home insurance company.
Most major auto insurance companies will only write umbrella policies for existing customers, though it can also depend on your state. Umbrella insurance is usually cheap compared to an auto or home policy, so it might not be worth switching companies just for a lower umbrella premium.
Increase the liability limits on your other insurance policies.
Insurance companies often require you to reach certain coverage limits on your home and/or car insurance policy before they will sell you an umbrella policy. For instance, many insurers require customers to have at least $100,000 or $250,000 in bodily injury liability per person on their auto policy.
Choose coverage limits that match your assets and account for future income.
When deciding how much umbrella insurance to buy, be sure to consider your total net worth. If someone sues you for damages, your assets and income could be at risk, and your future wages might even be garnished. As a result, your umbrella policy should cover the value of all of your assets, including vehicles, property, retirement accounts, and investments. Even if you don’t have many assets at the moment, you should still purchase umbrella insurance if you anticipate reaching a higher net worth in the near future.
To determine the best umbrella insurance companies, WalletHub editors considered a variety of factors, including:
- Underwriting limits
- Added perks
Based on information from company websites and customer service representatives, WalletHub editors determined which insurance companies best meet the needs of different types of customers.